With ETH’s price at the $3900 level, the altcoin has been hitting new ATHs consistently since the beginning of 2021. Alongside ETH’s price rally, top DeFi tokens are being accumulated. Popular DeFi tokens were consolidating over the past two weeks and are making a comeback.
Chainlink [LINK], Yearn Finance [YFI] and Wanchain [WAN] have offered double-digit gains in the past week. There is an increase in the number of retail traders that have started accumulating DeFi tokens, due to high short-term reasons. More crypto natives may have started rotating into DeFi from ETH and BTC.
In addition to the increase in the number of DeFi’s unique addresses, TVL in most projects and the volume of WBTC has increased since the beginning of 2021.
DeFi TVL 90-day || Source: DeFiPulse
Based on the above chart, DeFi’s TVL is nearly three times the level it started in 2021. New retail traders have started accumulating DeFi tokens on account of the price rallies in the past 6 weeks. Additionally, retail traders have followed DeFi’s price rally, just as they did the rally of top memecoins.
Retail traders have started using some of the services on L2s and this corresponds with quiet accumulation, but selling pressure on ETH is still low. BAKE, RUNE, CAKE, MKR have started rallying after nearly a week of consolidation and several buying opportunities. In the case of BAKE specifically, the social volume has hit a peak based on data from Lunarcrush.com.
Social Volume for BAKE || Source: Lunarcrush
Based on the above price chart, the social volume has hit a peak on May 11, 2021 and the DeFi project continues to be undervalued. However, it is anticipated that BAKE will rally in response to this metric. There is a similar growth spurt observed on the chart of RUNE, CAKE and MKR.
Despite a drop in Maker’s price, the trade volume was up nearly 20%. This could be increasing pressure from sellers, however, the altcoin is expected to recover shortly.
This places it in the buy zone, at the current price level of $4898.19. In the case of DeFi projects, their comeback from a price drop is rather quick when compared to top altcoins. The differentiating factor is the market capitalization and the number of users. The social volume is the primary reason, besides the ROI and popularity, due to which traders are accumulating BAKE, RUNE, CAKE and MKR.